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Published on December 4, 2007

A group of 200 people yesterday submitted a joint complaint to the Department of Special Investigations (DSI) accusing a noodles franchiser of cheating them out of Bt100 million through a pyramid scheme.

The group said they were franchisees of Bangkok Noodles Ua Arthorn, operated by Siam Foods Franchise Co Ltd, which they said had taken a total of Bt100 million from them since it began operating last year. The group say that the firm has committed public fraud.

DSI spokesman Colonel Piyawat Kingket said no charges had been filed against the firm and its four directors, but he had liaised with the Finance Ministry and the Anti-Money Laundering Office to jointly investigate the complaint.

Piyawat said the Bangkok Noodles Ua Arthorn scheme was suspicious as it promised returns that were too high for a normal business to ever generate in a short period of time.

He called on members of the public to exercise extra caution before deciding to invest in any businesses that promised high returns or which appeared to have an operational structure similar to a pyramid scheme.

The firm's directors are Thanongsak Bunkhrob, Somsak Unnoi, Colonel Sujin Kesawakarn and Watcharaphorn Uthai.

Thanongsak later met with DSI officials and said that, as a replacement director, he was not aware of the firm's promise to pay such high returns to franchisees.

Nipha Pliansakul, a Phatthalung native, said she had invested Bt360,000 in the firm but had received high dividends on only a few occasions. Nipha said she later came to Bangkok only to find out that each of the company's three offices - in Don Muang and Wang Thong Lang districts and in Nonthaburi, were closed.

Siam Foods Franchise had promised that each franchisee would receive Bt75,000 over a 10-month period for an investment fund starting at Bt35,000. Returns of Bt100,000 over the same period were promised for larger investment funds starting at Bt45,000.

Nipha said all of the franchisees had been convinced by the firm's commercials, which were broadcast on several popular radio programmes.

The firm inaugurated its scheme at an exhibition hall in Muang Thong Thani, drawing much attention and a large number of applications from visitors to the event.

Piyanut Thamnukasetchai

The Nation